Valet Parking Insurance and Liability: What You Need to Know

By Sean Williams — 2025-01-10 — Guides

Insurance is the unsexy but essential foundation of any professional valet operation. Understanding coverage types and requirements protects you, your guests, and your venue.

Why Insurance Matters

When you hand your car keys to a valet attendant, you are entrusting a significant asset to a stranger. When you hire a valet company for your venue, you are bringing a third-party operation onto your property. In both cases, proper insurance coverage is not optional — it is essential.

An uninsured or underinsured valet operation exposes vehicle owners, venue operators, and event hosts to significant financial risk. A single damaged vehicle or slip-and-fall incident can result in claims that far exceed the cost of the valet service itself.

Types of Coverage to Require

A professional valet company should carry several types of insurance. General liability coverage protects against bodily injury and property damage claims. Garage keeper's legal liability specifically covers vehicles while they are in the valet company's care, custody, and control.

Workers' compensation coverage is required by California law for employees and protects the valet company's attendants in case of on-the-job injury. Automobile liability insurance covers incidents that occur while attendants are driving guest vehicles.

What to Ask Your Valet Provider

Request a certificate of insurance before signing any contract. Verify coverage limits — they should be appropriate for the value of vehicles being handled. For high-end events where exotic cars are expected, ensure the garage keeper's coverage limits are sufficient.

Ask to be named as an additional insured on the policy. This provides direct protection for your venue or event in case of a claim. Any reputable valet company will accommodate this request.

Red Flags to Watch For

Be wary of valet companies that cannot produce insurance documentation promptly, offer suspiciously low prices (which often indicate inadequate coverage), or are vague about their claims process. These are signs of an operator cutting corners.

Also verify that the company's insurance is with a reputable carrier, not a fly-by-night operation. Coverage is only as good as the company backing it.